The domestic equity benchmarks ended with robust gains on Friday. The Nifty settled above the 17,850 mark after hitting day's low of 17,584.20 in mid-morning trade. Banks, financial services and consumer durables scrips were in demand. On the flip side, healthcare, pharma and oil & gas stocks declined. As per provisional closing data, the barometer index, the S&P BSE Sensex jumped 909.64 points or 1.52% to 60,841.88. The Nifty 50 index gained 243.65 points or 1.38% to 17,854.05. The Nifty 50 index rallied on the back of sharp buying in Adani Enterprises (up 1.25%), Adani Ports & SEZ (up 7.98%) and Ambuja Cements (up 6.03%).

The National Stock Exchange (NSE) has put Adani Enterprises, Adani Ports & SEZ and Ambuja Cements under additional surveillance measure (ASM) framework effective 3 February 2023.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index shed 0.04% while the S&P BSE Small-Cap index fell 0.47%.

The market breadth was weak. On the BSE, 1,350 shares rose and 2,189 shares fell. A total of 129 shares were unchanged.

Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 8.48% to 14.40.

India Services PMI:

The S&P Global India services Purchasing Managers' Index (PMI) fell to 57.2 in January as compared to 58.5 in December. It has been above the key level of 50 that separates growth from contraction for an eighteenth straight month.

Meanwhile, The S&P Global India Composite PMI Output Index fell from December's near 11-year high of 59.4 to 57.5 in January. Manufacturing production increased at a stronger rate than services activity, but growth moderated in both cases.

Buzzing Index:

The Nifty PSU Bank index advanced 3.07% to 3,888.60. The index slipped 5.84% in the past two trading sessions.

Bank of Baroda (up 6.36%), Canara Bank (up 4.23%), State Bank of India (up 3.13%), Bank of India (up 2.89%) and Punjab National Bank (up 2.66%), Punjab & Sind Bank (up 1.96%), Indian Bank (up 0.94%), Union Bank of India (up 0.89%), Indian Overseas Bank (up 0.56%) and UCO Bank (up 0.53%) rallied.

Bank of Baroda jumped 6.36% after the bank's net profit jumped 75.4% to Rs 3,852.74 crore on 32.27% rise in total income to Rs 27,092.09 crore in Q3 FY23 over Q3 FY22.

Stocks in Spotlight:

Adani Ports and Special Economic Zone jumped 7.98%. The company said that it handled approximately 27.6 MMT of total cargo in January 2023, recording a growth of 11% year on year. The handled cargo volumes rose 9.96% as against with 25.1 MMT of total cargo handled in December 2022. During April 2022- January 2023, APSEZ clocked approximately 280.5 MMT, registering a growth of 8% year on year.

Tata Consumer Products declined 1.42%. The FMCG major reported 26% rise in consolidated net profit to Rs 364 crore on an 8% increase in revenue from operations to Rs 3,475 crore in Q3 FY23 over Q3 FY22.

Birlasoft shed 1.32%. The company reported a consolidated net loss of Rs 16.36 crore in Q3 FY23 as against net profit of Rs 115.05 crore in Q2 FY23. The company reported a consolidated net profit of Rs 113.97 crore in Q3 FY22. Revenue from operations rose 2.5% quarter on quarter and 14% year on year to Rs 1,221.89 crore in the quarter ended 31 December 2022.

The company said it signed deals of total contract value (TCV) $231 million during the quarter. TCV of new deal wins was $102 million and renewals amounted to $129 million for Q3 FY23. Attrition last twelve month (LTM) was 25.5% in Q3 FY23 as against 27.4% in Q2 FY23 and 27.3% in Q3 FY22.

Berger Paints India rallied 3.06%. The company posted a consolidated net profit of Rs 201.17 crore in Q3 FY23 from Rs 252.97 crore recorded in Q3 FY22. Revenue from operations rose to Rs 2,693.59 crore in Q3 FY23 from Rs 2,550.77 crore recorded in Q3 FY22.

HDFC Asset Management Company (HDFC AMC) rose 0.44%. The company said that it has received approval from SEBI for change in control of the company due to proposed stake sale by abrdn Investment Management Limited, the co-sponsor of HDFC Mutual Fund. abrdn can reduce their stake in the company to less than 10% and cease to be co-sponsor of HDFC Mutual Fund.

Divis Laboratories tumbled 11.85% after the pharmaceutical company's consolidated net profit slumped 66% to Rs 306.80 crore on 31.51% decline in revenue from operations to Rs 1,707.68 crore in Q3 FY23 over Q3 FY22.

Mahanagar Gas (MGL) skid 0.38%. The company reported a consolidated net profit of Rs 172.07 crore in Q3 FY23, which is significantly higher as compared with a net profit of Rs 56.79 crore in Q3 FY22. Net revenue from operations increased by 62.62% YoY to Rs 1671.39 crore during the quarter.

Zydus Lifesciences added 0.55%. The pharma company's consolidated net profit jumped 24.48% to Rs 622.9 crore on a 19.85% increase in total revenue from operations to Rs 4,362.3 crore in Q3 FY23 over Q3 FY22.

Crompton Greaves Consumer Electricals slipped 7.97% after the company reported 41% decline in consolidated net profit to Rs 88.19 crore despite of 7.5% rise in net sales to Rs 1,516.21 crore in Q3 FY23 over Q3 FY22.

Karnataka Bank surged 9.97% after the private lender's net profit surged 105.14% to Rs 300.68 crore on 16.68% increase in total income to Rs 2,055.31 crore in Q3 FY23 over Q3 FY22.

Mahindra Holidays & Resorts India rallied 3.06% after the company's standalone net profit jumped 74.5% to Rs 62.78 crore on 17.9% increase in net sales to Rs 315.05 crore in Q3 FY23 over Q3 FY22.

Global Markets:

Most of the markets in Europe declined while Asian stocks ended mixed on Friday.

In Europe, the Bank of England raised interest rates by half a percentage point Thursday as it sought to tame double-digit inflation that is fueling a cost-of-living crisis, public-sector strikes and fears of recession. The bank's monetary policy committee voted 7-2 to push its key rate to 4%.

China's service sector showed a rebound in the first month of 2023, according to the Caixin/S&P Global services purchasing managers' index (PMI). The reading rose to 52.9 in January, from the business activity index of 48 seen in December.

The au Jibun Bank Japan services purchasing managers' index came in at 52.3 for the month of January, ticking higher than the previous reading of 51.1 seen in December.

Meanwhile, travel between mainland China and Hong Kong as well as Macao will fully resume on Feb. 6, China's Hong Kong and Macao Affairs Office of the State Council said in an announcement.

The release said mandatory tests for most travelers will be dropped, and group tours between the regions will also resume.

The latest measures come after China scrapped its quarantine measures for international travelers and reopened its borders on Jan. 8, in an essential end to its zero-Covid policy.

US stocks ended mixed on Thursday, as investors turned their focus to a handful of key earnings reports due from mega-cap tech firms after the closing bell.